Symbol: EURCHF; Type: SELL; Open Price: 0.97565; Close Price: 0.9713; Profit: +0.446%.
The cost of energy will account for 15% of GDP in Europe
According to Goldman, Europe's Energy Bills will Have Increased by $2 Trillion by the Year 2023. According to the experts, a reasonable response would be price controls for power generation. They estimate that the energy cost will account for 15% of the GDP in Europe. On Friday, energy ministers from the EU will get together to discuss potential measures, such as price limits for natural gas and the suspension of power derivatives trading.
Energy crisis in Germany
The reduction in factory orders was more significant than predicted, coming in at 1.1%, with analysts expecting a loss of 0.7%. After Russia shut off the natural gas supply, Germany is doing everything possible to avoid an energy catastrophe over the winter. The government, led by Chancellor Olaf Scholz, has announced measures to the tune of 64.5 billion dollars and 65 billion euros to assist individuals and companies in coping with the pinch.
The situation with the S&P 500
The S&P 500 index rose again after falling by as much as 1% earlier in the trading day, as yields on U.S. government bonds fell throughout the curve. After the Federal Reserve indicated it would maintain its aggressive stance, US stock prices have retraced around half of the gains since their lows in June. The week ending on August 31 saw redemptions of $9.4 billion for global equities funds, which ranks as the fourth-largest amount for all of this year. The outflow from US stocks was the largest in the past 10 weeks, while the flow from global bond funds was $4.2 billion. CVS Health Corp. has agreed to purchase Signify Health Inc., a home health care and technology service supplier, for approximately $8 billion.